SEARCH FRICTIONS, UNEMPLOYMENT, AND HOUSING IN CITIES: THEORY AND POLICIES
Number of Authors: 1
2014 (English)In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 54, no 3, 422-449 p.Article in journal (Refereed) Published
We propose an urban search-matching model with land development. Wages, unemployment, prices of housing and land are endogenously determined. We characterize the steady-state equilibrium and then discuss the issue of efficiency. To explore interactions among markets, we implement comparative static analysis. We also consider three policies: an entry-cost policy that reduces firms' entry, a transportation policy that reduces commuting costs, and a housing policy that decreases rental prices. We find that the transportation and housing policies are more efficient if the unemployment rate is low, while the entry-cost policy is more efficient if the unemployment rate is high.
Place, publisher, year, edition, pages
2014. Vol. 54, no 3, 422-449 p.
Economics and Business
IdentifiersURN: urn:nbn:se:su:diva-106434DOI: 10.1111/jors.12098ISI: 000337698800004OAI: oai:DiVA.org:su-106434DiVA: diva2:736289